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The problem is that inference is a whole different ballgame in terms of costs compared to a traditional SaaS model where each extra customer adds near zero in cost.

They may make it work but OpenAI is more akin to a traditional high revenue low profit business like for example a grocery store.

Thats why we are seeing the explosion of extra tools to try lock in business for higher value use cases and not fight on the margin.



In the UK, £1 of every £3 spent on groceries is in Tesco supermarket.

They have just under 7% gross margin on £70bn of revenue.

OpenAI are going to need to sell a lot of ads to pay that $300bn bill they have coming.




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